Connections, cash helped Evansville get money-generating convention

Convention goers begin to fill the convention floor before the gavel drops to kick off the events during the 2016 Republican National Convention at Quicken Loans Arena.(Photo: Robert Hanashiro, USA TODAY)

EVANSVILLE, Ind. -- Political connections, a nearly six-figure cash contribution and demonstrated ability to host large conclaves explain why Evansville will stage a state Republican convention this weekend that could generate more than $750,000 in local economic activity.

Given the openly political nature of the convention at The Ford Center, Indiana GOP officials haven't hesitated to say Evansville's election of a Republican mayor helped the city win the right to host the event. A host committee chaired by Mayor Lloyd Winnecke crafted the city's bid proposal, which beat out two others.

It didn't hurt that state Rep. Holli Sullivan, R-Evansville, is an officer of the state GOP or that Lt. Gov. Suzanne Crouch is a Vanderburgh County resident.

"The stars were aligned pretty nicely for us to get the nod," Winnecke said.

It's not a nod Evansville is used to getting. Traditionally held in Indianapolis, the biennial Republican convention was moved to Fort Wayne for 2014. That event -- just the state party's second to be held outside Indy -- was considered a success. After returning to Indianapolis in 2016, GOP officials decided to hit the road again this year.

A 'calculator system'

Partisan though it may be, local officials speak of the convention in economic development rather than political terms.

The GOP reported this week that it expects about 1,500 approved and credentialed delegates at the convention, plus an estimated 250 guests, staff and vendors.

Convention & Visitors Bureau Director Bob Warren estimated the convention weekend, which begins Friday with a series of social events, can generate as much as $780,000 in local economic activity.

Using formulas relied upon by CVBs around the country, Warren estimated the GOP convention could generate $295,000 in direct expenditures and another $485,000 in indirect expenditures.

Warren used a "calculator system" to estimate the city's guests will spend almost $230,000 for food and beverages and about $64,500 in hotel revenue.

It's a calculation, all right.

"Basically, you’re taking the total attendees, and you’re multiplying that times 1.5 days, which is the length of stay -- and then you multiply that times $102 for goods and services," Warren said. "That’s where you get to just south of $230,000. It ranges from $88 a day to $150 a day depending on the market you’re in.

"The (hotel) room block for the (state GOP's Request for Proposal) calculated out to just at 500 rooms, and we’re calculating 500 rooms times an average daily rate of $129 to get $64,500."

There's more. Warren cited "an economic impact factor of 2.66 if you wanted to multiply that direct expenditure to get indirect expenditure." That's a projection of economic activity generated in the community by employees of businesses that get convention business -- extra money they earned because of the extra business.

Warren said his calculations may well be on the low side, too. The CVB assumes 1,500 visitors when hundreds more are expected and does not account for visitors staying in hotels not included in the designated room block.

An added inducement

It is small wonder, then, that the city's bid proposal speaks of an added inducement to state GOP officials to select Evansville -- $100,000 raised from private donors by Winnecke's 14-member host committee to offset convention expenses. Those expenses include The Ford Center's $10,000 rental fee, sound and stage equipment, a Friday night welcome reception, shuttles for visitors and office space for 30-50 people.

Deputy Mayor Steve Schaefer, a member of the committee, said the group didn't meet its original $100,000 goal but did meet estimated expenses.

Schaefer pointed out, correctly, that such private fundraising efforts often are undertaken to help attract large events to cities.

A local host committee raised about $70,000 before the Ohio Valley Conference brought its season-ending men's and women's basketball tournaments to Evansville in March, Schaefer said. The OVC tournament was here on a one-year trial, but OVC officials subsequently announced the event will stay in Evansville for two more years.

When The Ford Center hosted the October convention of Accelerate Indiana Municipalities (AIM), formerly known as the Indiana Association of Cities and Towns, it did so with the help of $80,000 in private money.

"No city funds have been used (for the GOP convention)," Schaefer said. "In addition, the event is paying normal rates at the Ford Center."

Policymakers

It is not lost on Winnecke or Sullivan that the Republicans in Evansville this weekend include many statewide policymakers and budget writers.

Those include Gov. Eric Holcomb, Crouch, House Speaker Brian Bosma, Senate President pro tempore Rod Bray and a slew of lower-ranking state legislators, Indiana Superintendent of Public Instruction Dr. Jennifer McCormick and several state officers and members of Congress.

Sullivan pointed to the University of Southern Indiana's growth and its role as an economic driver, the August opening of the Stone Family Center for Health Sciences medical school in downtown Evansville and the new Tropicana Evansville land-based casino. She also named I-69, the Signature School, the University of Evansville and Ivy Tech Community College.

"All those things are great to have more eyes on," the local legislator said. "It’s just really good timing for our region to be able to show some of the works and some of the funds that have been poured into projects. It’s always good for those people that helped us at the very beginning of a project see it come to fruition and that we were very good stewards of our taxpayers’ money."

It's one thing for local legislators to advocate for projects in Indianapolis, Sullivan said. It's quite another for Indy-based decision-makers to come to Evansville and see them with their own eyes.

"They can witness and visualize and actually use some of the facilities and things that we’ve talked about for many years to them," she said.

The GOP convention is, of course, a political event -- so there will be lots of politics.

Ed Feigenbaum, publisher and editor of Indiana Legislative Insight, said ambitious Republicans from all over the state will be in Evansville to see and be seen. Some of the moves they make will be obvious, and some won't.

"It’s a great opportunity to go and see people from around the state that you haven’t seen in a long time and to see them together and, you know – who’s talking to whom and building coalitions for future runs (for elected office) and things like that, through hospitality suites," Feigenbaum said.

Winnecke acknowledged the politics but made it clear he'd be just as happy to see Democrats flocking to Evansville for a state convention. Democratic dollars spend just as well as Republican dollars.

"I might not be part of the welcome video (if Democrats came), but we'd happily pursue it," the mayor said with a laugh.